TELFAIR COUNTY BOARD OF EDUCATION I -TABLE OF CONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL _ (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 6 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 7 ADDffiONAL FINANCIAL INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 23 I FIDUCIARY FUND TYPE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCYFUND 24 SCHEDULES I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 25 2 SCHEDULE OF STATE REVENUE 27 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 29 TELFAIR COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FlNANCIAL ADDmONAL FINANCIAL INFORMATION SCHEDULES ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 5 BY SITE Page 30 31 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WI1H GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WI1H REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WI1H 0MB CIRCULAR A-133 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S. W., Suite 214 Atlanta, Georgia 30334-8400 May 16, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Telfair County Board ofEducation INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general-pwpose financial statements ofthe Telfair County Board of Education, as of ~d for the year ended June 30, 200I, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Telfair County Board ofEducation's management. . Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1mon. As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2001ARL-13 * The general-pwpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general-pwpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-pwpose financial statements. * The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general-pwpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Telfair County Board ofEducation as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 16, 2002, on our consideration ofthe Telfair County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general-pwpose financial statements of the Telfair County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules I through 5), which includes the Scedule ofExpenditures ofFederal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-pwpose financial statements. Such information has been subjected to the 2001ARL-13 auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose :financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. RWH:as 2001ARL-13 TELFAIR COUNTY BOARD OF EDUCATION TELFAIR COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 740,737.11 $ 141,458.04 29,890.16 161,032.69 121,224.10 8,725.47 2,500.48 Total Assets $ 931,659.96 $_,......27..,.3=,9...,08...,.0...,9.,,. UABILIT!ES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Funds Held for Others Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital OuUay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 32,053.51 141,439.39 $ 173,492.90 $ 1,376.53 $ 8,725.47 2,500.48 930,283.43 89189.24 $ 931,659.96 $ 100,415.19 $ 931.659.96 $ ___21_3.,..9..,08_.0_9_ The notes to the general-purpose financial statements are an integral part of this statement. -2- EXHIBIT"A" TYPES CAPITAL PROJECTS FUND FIDUCIARY FUND TYPE AGENCY FUND TOTALS (Memorandum Onl:t'.l JUNE 301 2001 JUNE 301 2000 $ 60,719.76 $ 6,139.19 $ 949,054.10 $ 500,923.77 1,682,826.26 1,712,716.42 1,310,833.72 152,412.28 15,116.44 449,785.51 432,017.30 8,725.47 2.500.48 $ 1,895,958.30 $ 21,255.63 $ 3,122,781.98 $ 19,425.62 1,842.75 $ 6,590.04 $ 38,643.55 $ 38,011.41 141,439.39 145,948.38 14,665.59 14.665.59 $ 21.255.63 $ 194.748.53 $ 183,959.79 $ 1,715,169.30 180,789.00 0.00 $ 118951958.30 $ 1,376.53 8,725.47 $ 2,500.48 1,715,169.30 180,789.00 19,425.62 1,842.75 1, 172,370.34 1.019.472.67 887.444.66 $ 219281033.45 $ ' 21oa1 1083.37 $ 1,895,958.30 $ 21,255.63 $ 3,122,781.98 $ -3- TELFAIR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 SPECIAL ,I GENERAL REVENUE FUND FUND $ 8,813,102.91 $ 2,349,263.92 65,711.77 $ 11,228,078.60 $ 369,058.46 1,547,336.19 86,333.49 2,002,728.14 $ 7,938,647.12 $ 220,631.41 71,853.33 292,631.96 .324,536.49 817,449.06 92,102.50 712,965.26 603,290.41 3,765.19 13,211.00 9,725.35 5,000.00 $ 11,105,809.08 $ $ 122,269.52 $ 809,390.44 939,676.52 77,340.12 76,350.52 53,617.01 3,161.98 3,005.92 23,969.61 20,878.08 793,593.36 1,991,593.12 11,135.02 99,322.59 -10,700.15 657.73 $ 931,659.96 $===10=0=,4=1=5.=19= The notes to the general-purpose financial statements are an integral part of this statement. -4- EXHIBIT"B" CAPITAL , PROJECTS FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 301 2001 JUNE 30. 2000 $ 9,182,161.37 $ 8,758,825.93 $ 973,413.08 1,547,336.19 3,322,677.00 1,414,265.20 2,996,142.09 76,468.39 228,513.65 198,735.65 $ 1,049,881.47 $ 14,280,688.21 $ 13,367,968.87 $ 8,878,323.64 $ 8,425,725.60 $ 326,293.51 297,971.53 148,203.85 292,631.96 378,153.50 820,611.04 92,102.50 715,971.18 627,260.02 3,765.19 34,089.08 803,318.71 331,293.51 456,528.58 302,149.39 327,254.44 .324,439.00 672,525.92 86,278.16 642,020.95 594,739.97 3,497.86 78,841.90 781,502.80 166,632.06 $ 326,293.51 $ 13,423.695.71 $ 12,862,136.63 $ 723,587.96 $ 856,992.50 $ 505,832.24 1,172,370.34 2,081,083.37 1,581,881.82 . -10,700.15 657.73 -5,719.95 -910.74 $ 1.895.958.30 $ 2,928.033.45 $ 2,081,083.37 -5- TELFAIR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - lNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2001 EXHIBIT"C" GENERAL FUND ACTUAL . (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes Other Funds $ 8,266,248.00 $ 8,813,102.91 33,105.00 2, 175;056.00 2,349,263.9t 104,084.00 65 711.77 Total Revenues $ 10,578,493.00 $ 11,228,078.60 EXPENDITURES Current lnstructlon Support Services Pupil Services Improvement of lnstructlonal Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay $ 7,570,684.00 $ 7,938,647.12 209,412.00 72,450.00 279,010.00 329,987.00 794,917.00 92,773.00 642,675.00 573,267.00 4,000.00 13,211,00 9,798.00 220,631.41 71,853.33 292,631.96 324,536.49 817,449.06 92,102.50 712,965.26 603,290.41 3,765.19 13,211.00 / 9,725.35 5,000.00 Total Expenditures $ 10,592,184.00 $ 11,105,809.08 Excess of Revenues over (under) Expenditures $ -13,691.00 $ 122,269.52 OTHER FINANCING SOURCES Other Sources 5,500.00 Excess of Revenues and Other Financing Sources over (under) Expenditures $ -8,191.00 $ 122,269.52 FUND BALANCE JULY 1, 2000 889,286.12 809,390.44 Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food -79,895.68 FUND BALANCE JUNE 30, 2001 $ 801,199.44 $ ___93_1,..6_,59__.9_6_ SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 396,492.00 $ 369,058.46 1,720,258.00 1,547,336.19 96,611.00 86,333.49 $ 2,213,361.00 $ 2,002,728.14 $ 1,182,760.00 $ 63,017.00 59,418.00 56,551.00 16,421.00 7,980.00 35,578.00 24,573.00 804,303.00 939,676.52 77,340.12 76,350.52 53,617.01 3,161.98 3,005.92 23,969.61 20,878.08 793,593.36 $ 2,250,601.00 $ 1,991,593.12 $ -37,240.00 $ 11,135.02 $ -37,240.00 $ 11,135.02 92,718.37 99,322.59 6,725.12 -10,700.15 657.73 $ 100.415.19 The notes to ~ general-purpose financial statements are an integral part of this statement. -6- TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 200 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Telfair County Board ofEdcation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of'assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. -7- TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sourc~s) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. .Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option salel, faxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Expenditures are generally recognized when the related fund liability is incurred. A departure from the a~ove definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a - 8- TELFAIR COUN1Y BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS hrNE 30, ioo 1 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in late May 2001. Personnel contracts for tins employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. BUDGET The Telfair County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act,' OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. -9- TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contract~ and money market h.1vestments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: ( 1) Obligations issued by the State of Georgia or. by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) .Obligations of any corpor.ation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. -10- I TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY TAXES The Telfair County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 2, 2000 (levy date). Taxes were due on February 15, 2001 (lien date). Taxes coll_ected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Telfair County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $2,332,565.66. The tax millage rate levied for the 2000 tax year (calendar year) for the Telfair County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $973,413.08 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an. additional $3,548,500.85 has been collected or on March 31, 2004, whichever occurs first. INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. INTERFUND TRANSACTIONS The School District has the following type ofinterfund transactions: Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. -11 - TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. _Neither are such data comparable to a consolidation. -Interfund eliminations.have not been . ma.de in the aggregatio. n of this data. Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value ofsuch surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds-shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. . Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bond~, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created.the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and - 12 - TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO Tiffi GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE30.2001 Note 2: DEPOSITS AND INVESTMENTS (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 3Q, 200 I, the bank balances were $1,885,561.99. The amounts ofthe total bank balances are classified into three categories of credit risk: Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) The School District's deposits are classified by risk category at June 30, 2001, as follows: Risk Category Bank Balance 1 $ 200,000.00 2 1,685,561.99 3 0.00 Total $ 1,885,561.99. CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $1,712,716.42 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: - 13 - TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT D 11 11 NOTES TO THE GENERAL-PURPOSE FiNANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS AND INVESTMENTS .The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government _or any of its agencies or-instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance ~overage in any of the past three years. The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years. - 14- TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 4: RISK MANAGEMENT The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: Beginning ofYear Liability Claims and Changes in Estimates Claims Paid End of Year Liability 2000 2001 $ 126.00 $ 480.00 $ 126.00 $ 480.00 $ 480.00 $ 2,303.00 $ 2,783.00 $ 0.00 The School District has purchased a commercial crime insurance policy to provide additional insurance coverage as follows: Position Covered Amount All Employees $ 25,000.00 Note 5: OPERATING LEASES Telfair County Board of Education has entered into various leases as lessee for copiers and phone systems. These leases are considered for accounting pwposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $31,645.28. Future minimum lease payments for these leases are as follows: Year Ending Amount 2002 2003 2004 2005 2006 $ 32,309.40 32,309.40 18,715.77 7,969.44 664.12 Total $ 91,968.13 Note 6: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $192,566.38 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. - 15 - TELFAIR COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 6: ON-BEHALF PAYMENTS 'u , Georgia Department of Education . Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $149,486.52 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $16,266.86 Office of Treasury and Fiscal Services Pai~ to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost .- . In the amountof$26,813.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001: Project Unearned Executed - Contracts High School Biology Room Renoyation $ 9.995,00 f The amount described in Ws note is not reflected in the general-purpose fn:iancial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District beli~ves that such disallowances, if any, will be immaterial to its overall financial position. Note 9: SUBSEQUENT EVENTS On March 19, 2002, the voters of Telfair County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. The question posed to the voters ofTelfair County, as stated on the Official Ballot of Telfair County, is as follows:. - 16 - TELFAIR COUN1Y BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS ruNE30,2001 Note 9: SUBSEQUENT EVENTS "Shall a one percent sales and use tax be imposed in Telfair County for a period oftime not to exceed 20 calendar quarters, commencing upon the expiration ofthe special one percent sales and use tax currently being levied in Telfair County, and for raising of not more than $5,800,000 for the purpose of providing funds to pay or to be applied toward the cost of acquiring, constructing and equipping of a new elementary school; renovating, expanding, furnishing, and equipping ofexisting schools; renovating and maintaining ofexisting facilities, including system-wide technology improvements, the maximum cost ofsuch projects not to exceed $5,800,000? If imposition of the tax is approved by the voters, such vote shall also constitute approval ofthe issuance ofgeneral obligation debt ofTelfair County School District in the principal amount of $4,000,000 for the above purposes, including capitalized interest through June I, 2004." Note I0: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and . survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2001 2000 1999 100% 100% 100% $ 860,769.31 $ 854,691.33 $ 910,157.03 l - 17 - TELFAIR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable . Inventories Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD J. SERVICES. LOTTERY FUND PROGRAMS $ 124,458.86 $ 37,718.04 11.~0.56 8,725.47 2 1500.48 $ 146.725.37 $ 37,718.04 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accoun~s Payable Salaries Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 3,747.93 $ 8,390.96 42.562.25 29.327.08 $ 46.310.18 $ 37.718.04 $ 8,725.47 2,500.48 89,189.24 $ 0.00 $ 100.415.19 $ 0.00 $ 146,725.37 $ 37,718.04 See notes to the general-purpose financial statements. - 18 - EXHIBIT"E" FEDERAL PROGRAMS TOTALS JUNE 307 2001 JUNE 30, 2000 $ 162,176.90 $ 157,829.29 $ 110,183.54 121,224.10 103,756.33 8,725.47 2,500.48 19,425.62 1,842.75 $ 110,183.54 $ 294,626.95 $ 282,853.99 $ 20,718.86 $ 20,718.86 19,914.62 32,053.51 $ 37,583.02 . 69,550.06 141,439.39 145,948.38 $ 110.183.54 $ 194,211.76 $ 183,531.40 $ 8,725.47 $ 19,425.62 2,500.48 1,842.75 $ 0.00 89,189.24 78,054.22 $ 0.00 $ 100,415.19 $ _ _9_9._,3_22_.5_9_ $ 110,183.54 $ 294,626.95 $ 282,853.99 -19- TELFAIR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 SCHOOL FOOD SERVICES Fl:JND LOTTERY PROGRAMS $ 63,406.00 $ 305,652.46 650,545.95 86.333.49 $ 800.285.44 $ 305,652.46 $ 232,228.21 64,477.00 417.90 3,161.98 3,005.92 635.07 $ 789,150.42 60.00 1,666.38 $ 789,150.42 $ 305,652.46 $ 11,135.02 $ 0.00 99,322.59 0.00 -10,700.15 657.73 $ 1001415.19 s=====o=.o=o= See notes to the general-purpose financial statements. -20- EXHIBIT"F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE.30 1 2001 JUNE 301 2000 $ 369,058.46 $ 476,448.28 $ 896,790.24 1,547,336.19 1,414,265.20 86,333.49 86,501.01 896,790.24 $ 2,002,728.14 $ 1,9n,214.49 $ 707,448.31 $ 939,676.52 $ 922,898.74 12,863.12 75,932.62 53,617.01 23,334.54 20,818.08 2,n6.56 77,340.12 76,350.52 53,617.01 3,161.98 3,005.92 23,969.61 20,878.08 793,593.36 63,746.46 45,896.89 52,616.52 10,087.68 11,792.72 26,761.03 186.27 65,630.90 n2,978.80 25,000.00 $ 896,790.24 $ 1,991,593.12 $ 1,997,596.01 $ 0.00 $ 11,135.02 $ -20,381.52 0.00 99,322.59 126,334.80 . -10,700.15 657.73 -5,719.95 -910.74 $ 0.00 $ 100,415.19 $==-==9=9=,3,..2.2...5=9= - 21 - TELFAIR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 EXHIBIT"G" ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets GEORGIA STATE Fl~CINGAND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS . JUNE 30, 2001 JUNE 30, 2000 $ 180,789:00 $ 180,789.00 $ 83,846.92 $ 1,682,826.26 1,682,826.26 932,640.61 152,412.28 152,412.28 155,882.81 $ 180,789.00 $ 1,835,238.54 $ 2,016,027.54 $ 1,172,370.34 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft FUND EQUITY Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects $ Unreserved Undesignated Total Fund Equity $ $ 120,069.24 $ 120,069.24 $ 1,715,169.30 $ 1,715,169.30 $ 1,172,370.34 180,789.00 180,789.00 0.00 0.00 0.00 0.00 180,789.00 $ 1,715,169.30 $ 1,895,958.30 $ 1,172,370.34 Total Liabilities and Fund Equity $ 180,789.00 $ 1,835,238.54 $ 2,016,027.54 $ 1,172,370.34 See notes to the general-purpose financial statements. -22- TELFAIR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND VEAR ENDED JUNE 30, 2001 EXHIBIT "H" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 REVENUES Taxes Other Funds $ 0.00 $ 973,413.08 $ 973,413.08 $ 1,051,999.39 76,468.39 76,468.39 30,402.07 Total Revenues $ 0.00 $ 1,049,881.47 $ 1,049,881.47 $ 1,082,401.46 EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements $ 156,178.00 $ 156,178.00 $ 56,587.00 113,528.51 170,115.51 $ 136,132.06 Total Expenditures $ 56,587.00 $ 269,706.51 $ 326~93.51 $ 136,132.06 Excess of Revenues over (under) Expenditures $ -56,587.00 $ 780,174.96 $ 723,587.96 $ 946,269.40 OTHER EINA!l!CING SO!,,!RCES (USESl Operating Transfers In Operating Transfers Out $ 237,376.00 $ 237,376.00 $ -237,376.00 -237,376.00 Total Other Financing Sources (Uses) $ 237,376.00 $ -237,376.00 $ 0.00 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 180,789.00 $ 542,798.96 $ 723,587.96 $ 946,269.40 F!,,!ND BALANCE JULY 1 0.00 1,172,370.34 1,172,370.34 226,100.94 EUNp BALANCE JUNE 30 $ 180.789.oo $ 1-7151169.30 $ 118951958.30 $ 1I1721370.34 See notes to the general-purpose financial statements. -23 TELFAIR COUN;"J:YBOARD OF EDUCATION . STATEMENT OfCHANGES;iMASSE'ts AND'UABIUTIES . FIDUCIARYFUNOF,;P-E.:~~GENCY FUND YEAR,ENDED'JUNE30, 2001 EXHIBIT "I" . THE TELFAIR F~lbY CONNECTIOf::! ASSETS Cash Accounts Receivable LIABILITIES Accounts Payable Funds Held for Others BALANCE JULY 1; 2000 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2001 $, 0.00 $ 118,397.16 $ 112,257.97 $ 6,139.19 0.00 15,116.44 15,116.44 $ 0.00 $ 1331513.60 $ 1121257.97 $ 211255.63 $ 0.00 $ 34,413.28 $ 27,823.24 $ 6,590.04 0.00 161,336.84 146,671.25 14,665.59 s_____o._oo_ s 195i750.12 s s_ _ _ 174494.49 21. .2..,5.._5....,63_ 1 J . See notes to the general-purpose financial statements. -24- TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE Of EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSs THROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD. Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program . 10.553 . 10.555 NIA $ NIA 193,462.26 410,374.72 $ (2) 742,441.45 (3) Total Child Nutrition Cluster $ 603,836.98 $ 742,441.45 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Dlstrlbutlon Program (1) 10.550 NIA 46,708.97 46,708.97 Total U. S. Department of Agriculture $ 650,545.95 $ 789,150.42 Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Ad Part B - Special Education Flow Through Preschool Capacity Building Improvement Grant 84.027 84.173 84.173 NIA $ NIA NIA 174,838.67 $ 15,651.00 3,357.00 174,838.67 15,651.00 3,357.00 Total Special Education Cluster $ 193,846.67 $ 193,846.67 Other Programs Pass-Through From Georgia Department of F.ducatlon Elementary and Secondary Education Ad Title I Accountability Grants 84.348 NIA Grants to Local Educational Agencies 84.010 NIA Title II Eisenhower Professional Development 84.281 NIA TrtleVI Innovative Education Program Strategies 84.298 NIA Class Size Reduction 84.340 NIA Vocational Education - Basic Grants to States High School Program Basic Grant 84.048 NIA Pass-Through From Office of School Readiness Post Secondary Education Higher Education Program Teacher Quality Enhancement Grants 84.336 NIA 43,252.00 563,984.75 19,211.75 18,576.00 a,n4.07 39,145.00 43,252.00 563,984.75 19,211.75 18,576.00 a,n4.07 39,145.00 10,000.00 10,000.00 Total U. S. Department of Education $ 896,790.24 $ 896,790.24 Total Federal Financial Assistance NIA = Not Available $ 1,685,940.66 -25- TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF EXRENDITURES OF FEDERAL AWARDS YEAR Ell,IDED JUNE 30, 2001 SCHEDULE "1 Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included In the 2001 National School Lunch Program. (3) Expenditures for this program Include State, and/or Other Funds. Expenditures are not maintained by fund source. Major Programs are Identified by an asterisk (*) In front of the CFDA number. The School District did not provide Federal Assistance to any Subreciplent. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Telfair County Board of Education and Is presented on the modified accrual basis of accounting which is the basis of accounting used In the presentation of the general-purpose financial statements. See notes to the general-purpose financial statements. - 26- TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 SCHEDULE "2" AGENCY/FUNDING . GRANTS Community Affairs, Georgia Department of Local Assistance Grant Governor's Emergency Funds (1) Education, Georgia Department of Quality Basic Education Oired lnstrudional Cost Kindergarten Program Kindergarten Program - Ear1y Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development lndired Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Computers in the Classroom Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 20,000.00 5,000.00 $ 20,000.00 5,000.00 501,083.00 43,311.00 1,314,242.00 69,066.00 650,661.00. 1,095,424.00 648,018.00 338,900.00 6,590.00 196,834.00 437,578.00 112,720.00 105,067.00 . 220,464.00 74,877.00 20,209.00 181,968.00 45,237.00 1,219,565.00 501,083.00 43,311.00 1,314,242.00 69,066.00 650,661.00 1,095,424.00 648,018.00 338,900.00 6,590.00 196,834.00 437,578.00 112,720.00 105,067.00 220,464.00 74,877.00 20,209.00 181,968.00 45,237.00 1,219,565.00 359,910.00 106,452.00 53,530.00 7,532.00 13,273.00 617,349.00 $ 67,304.00 3,535.86 149,486.52 31,839.00 4,118.67 16,266.86 63,406.00 37,190.00 359,910.00 106,452.00 53,530.00 7,532.00 13,273.00 617,349.00 63,406.00 67,304.00 3,535.86 149,486.52 31,839.00 4,118.67 16,266.86 37,190.00 268,462.46 268,462.46 26,813.00 26,813.00 -27- TELFAIR COUNTY BOARD.OF EDUC:.\TION SGHEDWLE:OF~SliAiTE;REVENUE ,, : ~-J~sAR,ENDED :J\LINE30~'2001 SCHEDULE "2" _,. AGENCY/FUNDING CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL. $ 22,274.00 26,605.00 _$ 22,274.00 26,605.00 $ 8,813,102.91 $ ' 369,058:46 $ 9,182,161.37 (1) The purpose of these funds is to assist~ repairs to the dugout and the scorekeeper's booth at the school softball field. ' '--: \ ' See notes to the general-purpose financial statements. -28-, TELFAIR COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2001 SCHEDULE "3" PROJECT Renovations or modification of the following existing properties and facilities and/or new construdion: Telfair County Middle/High School, Telfair County Primary School, Central Elementary School, and/or Telfair Altemative Center ORIGINAL ESTIMATED COST(1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS $ 5,800,000.00 $ 5,800,000.00 $ 326,293.51 $ 166,632.06 .Ongoing (1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. (3) The voters of Telfair County approved the Imposition of a 1% sales tax to fund the above project. Amounts expended for the projed may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. See notes to the general-purpose financial statements. -29- TELFAIR COUNTY BOARD OF EDUCATION . GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBEl ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30. 2001 SCHEDULE "4" DESCRIPTION Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (13) Program Primary Grades-Early Intervention (13) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I category II Category Ill category IV Gifted Student category VI Remedial Education Program Altemative Education Program English Speakers of Other Languages (ESOL) TOTAL DIRECT INSTRUCTIONAL PROGRAMS Media Center Program Staff and Professional Development ALLOTMENTS . FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL $ 556,957.00 $ 548,755.69 $ 8,746.53 $ 557,502.22 48,140.00 42,414.44 1,053.51 43,467.95 1,460,788.00 1,584,625.13 29,031.86 1,613,656.99 76,768.00 157,262.00 1,856.95 159,118.95 723,214.00 890,319.53 28,386.10 .. 918,705.63 1,217,571.00 1,297,668.64 19,604.46 1,317,273.10 720,276.00 971,556.08 48,132.14 1,019,688.22 376,690.00 336,920.71 41,479.84 378,400.55 837,768.00 87,904.58 194.19 88,098.n 252,565.08 18,587.27 271,152.35 461,319.12 20,403.91 481,723.03 17,669.88 4,910.46 22,580.34 116,783.00 115,466.27 1,554.92 117,021.19 245,047.00 263,794.83 3,030.02 266,824.85 83,226.00 101,632.57 426.68 102,059.25 22,463.00 46,944.10 21320.62 491264.72 $ 6,485,691.00 $ 7,176,818.65 $ 229,719.46 $ 7,406,538.11 202,258.00 501282.00 238,423.n 1,296.05 35,3n.10 551673.15 273,801.47 56,969.20 TOTAL QBE FORMULA FUNDS $ 6,738,231.00 $ 7,416,538.47 $ 320,770.31 $ 7,737,308.78 (1) Comprised of State Funds plus Local Five Mill Share. See notes to the general-purpose financial statements. 30- TELFAIR COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" .Telfair County Middle School Telfair County High School Central Elementary School Telfair County Primary School Telfair Alternative Center Central Office (Alternative Education Program) TOTAL (1) Comprised of State Funds plus Local Five Mill Share. ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 1,410,392.00 $ 1,558,075.68 1,604,208.00 1,759,699.34 1,583,628.00 1,842,386.03 1,804,237.00 2,081,195.83 165,021.29 83,226.00 159.94 $ 6,485,691.00 $ ==7==,4=06=,5=3=8=.1=1 See notes to the general-purpose financial statements. - 31 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS RussELL W. H1NTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400 May 16, 2002 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Telfair County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements ofTelfair County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated May 16, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about w~ether Telfair County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Telfair County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2001YB-40 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Telfair County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7341-01-01. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. This report is intended solely for the information and use ofthe management, members ofthe Telfair County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. .--__._spectfully submitted, to.